Arkansas panel approves video measure

James Jefferson

Friday, March 7, 2003 | 9:52 a.m.

LITTLE ROCK, Ark. -- A plea to help Hot Springs helped move legislation to allow the state's two racetracks to expand wagering on video games from a Senate committee to the floor of the chamber.

The Senate Revenue and Taxation Committee voted Wednesday to endorse the bill, 4-2, after sponsoring Sen. Terry Smith, D-Hot Springs, implored his colleagues to "vote for this bill to help my hometown."

Smith said the measure would boost tourism and create "a ton of new jobs in Hot Springs and West Memphis" while generating millions of dollars for college scholarships.

"My hometown is never going to get a Toyota plant. We're never going to get a corporate headquarters for Wal-Mart, or a big university campus, or a nuclear reactor, or an Air Force base," Smith said in an emotional plea. "We do tourism, and we do it very well. We need this legislation to keep our top tourism business healthy."

Critics contended the promise of new revenue would not pan out but that expanding gambling would increase gambling addition and other social ills.

"I would hope that we would resist the urge to exploit those who can least afford it," said Sen. Tim Wooldridge, D-Paragould, the committee chairman.

Terry Thompson, executive pastor at Second Baptist Church in Hot Springs, said expanding video wagering was an undesirable revenue source that Hot Springs residents had rejected.

"The people don't want it. They voted it down. It's not the best way to bring money into Arkansas," Thompson said.

Video poker and other so-called games of skill would be allowed at Oaklawn Park thoroughbred track in Hot Springs and Southland Greyhound Park in West Memphis. Both tracks already offer electronic Instant Racing, wagers on previously run races.

Track officials said the addition would enable their operations to compete more effectively with casinos in surrounding states, help boost Arkansas tourism and provide much-needed revenue for the state.

Supporters say a 20-percent tax on the money generated would produce about $20 million annually for college scholarships and local governments where the games are played.

The games would be regulated by the Arkansas Racing Commission.

The bill also would require the racetracks to set aside 15 percent of net wagering revenues from the new electronic games for live-race purses and breeding funds.

The bill defines electronic games of skill as games played through any electronic device or machine that affords an opportunity for the exercise of skill or judgment where the outcome is not completely controlled by chance.

However, critics noted that video poker and other games allowed under the proposal have been defined in Minnesota and other states as games of chance.

The state constitution bans lotteries and other games of chance.